I. Market Price Dynamics
> Domestic Market
- **Yuyao Market**: On May 14, 2026, the mainstream transaction price for general-purpose polystyrene (GPPS) stood at RMB 10,000–11,200 per ton. With continuous declines in raw material prices, some PS market participants slightly reduced their offered prices by RMB 50–150 per ton; however, buyer sentiment remained cautious and demand-driven, resulting in limited trading activity.
- **Overall Domestic Price Trend**: From January to April 2026, PS prices fluctuated significantly. In January–February, prices oscillated at a low range of RMB 7,500–7,900 per ton. Driven by Middle East geopolitical tensions in March, a sharp surge in upstream styrene prices pushed GPPS/HIPS prices up to RMB 8,600/9,200 per ton, respectively. In April, prices retreated to RMB 7,800–8,200 per ton for GPPS and RMB 8,400–8,800 per ton for HIPS, amid falling feedstock costs and weak demand. The peak year-on-year price increase exceeded 14%.

> International Market
- **Export Prices**: In April 2026, China’s PS export average price rose both month-on-month and year-on-year. PS prices in Europe and Southeast Asia commanded premiums of over USD 200 per ton versus domestic Chinese prices, keeping arbitrage opportunities persistently open.

II. Supply-Demand Situation
Supply Side
- **Domestic Capacity**: As of end-2025, China’s total PS production capacity exceeded 8 million tons—up 109.4% from 3.83 million tons in 2020—with a five-year compound annual growth rate (CAGR) of 13.36%. In 2026, only 900,000 tons/year of new capacity is scheduled for commissioning, all concentrated in the second half of the year; no large-scale new facilities are expected to come online in the first half, resulting in a year-on-year capacity growth rate of less than 0.5%—the lowest in five years.
- **Industry Operating Rate**: The industry’s average operating rate in Q1 2026 was merely 51.56%, down 4.93 percentage points quarter-on-quarter. By end-March, it hit a multi-year low of 43.80%. Non-integrated producers incurred comprehensive losses, prompting widespread voluntary load reductions and shutdowns.
- **Imports**: In January 2026, China’s PS import volume totaled only 16,900 tons, down 67.64% year-on-year. Cumulative imports for Q1 declined 12.23% year-on-year. Major sources included Taiwan, China; South Korea; and Thailand. Importers’ procurement willingness remained weak due to overseas plant turnarounds and domestic price inversion.
- **Exports**: In April 2026, China’s total PS exports reached 50,900 tons—up 63.75% month-on-month and 79.31% year-on-year—setting a new historical high. Disruptions to overseas supply chains caused by Middle East instability, coupled with China’s robust supply reliability and competitive pricing, drove this record export performance. Among exported products, “other primary forms of polystyrene” continued to dominate, accounting for 66.10% of total exports in April 2026. Asia remained the top destination, with Southeast Asia leading; Vietnam ranked first, absorbing 12,300 tons—up to a new high—and representing 24.23% of total exports.

Demand Side
- **Domestic Demand**: In 2025, domestic PS demand exhibited structural expansion. Packaging remained the largest consumption segment (32%), followed by electronics & electrical appliances (28%), construction (18%), automotive (12%), and daily consumer goods plus others (10%). In 2026, China’s small household appliance export value is projected to reach USD 42.8 billion, up 11.3% year-on-year—directly boosting PS demand.
- **International Demand**: Southeast Asia’s underdeveloped petrochemical industrial chain and its role as a global manufacturing hub result in high dependence on imported raw materials—including PS from China. Meanwhile, parts of Europe face energy crises, pushing up production costs and constraining local PS capacity utilization—creating visible demand gaps. Since 2022, China’s PS exports to select European countries have increased notably; from January to April 2025, the share of PS exports to Europe rose to 24%.

III. Cost Factors
- **Raw Material Prices**: Profitability across the PS value chain is heavily concentrated upstream—at the pure benzene and styrene stages. Non-integrated PS producers face severely constrained cost pass-through capability, resulting in industry-wide losses. In Q1 2025, styrene—a key feedstock—exhibited a rally-then-correction pattern: its quarterly average price closed at RMB 8,492 per ton on March 13, down RMB 4.11 per ton quarter-on-quarter, translating into a ~4% reduction in PS production costs. In March 2026, Middle East tensions triggered a sharp styrene price spike, lifting PS prices; April saw a pullback as costs receded.
- **Energy Costs**: Energy price volatility also impacts PS production costs. For instance, energy prices were expected to rebound modestly from lows during Q2 2025, with WTI crude averaging USD 66–69 per barrel.

IV. Market Events
- **Promotional Campaigns**: Sony’s ‘Days of Play’ global promotion launched on May 27, 2026, and runs through June 10. While the PS5 console remains unchanged in price, accessories—including DualSense controllers and PS VR2 headsets—receive substantial discounts. PS Plus members enjoy additional savings. Standard DualSense controllers are expected to drop by EUR 20, bringing the starting price down to EUR 54.99; DualSense Edge elite controllers will fall by EUR 30—from EUR 219.99 to EUR 189.99; and PS VR2 headsets will be discounted by EUR 100—from EUR 449.99 to EUR 349.99.
- **New Product Launches**: On May 27, 2026, Sony launched the DualSense controller ‘007: No Time to Die’ Limited Edition in mainland China, with a suggested retail price of RMB 639.
- **Price Increases**: Effective May 1, 2026, Sony raised PS product prices across Southeast Asia. Indonesia saw the largest hike: the PS Portal streaming handheld’s new price is IDR 5,199,000—up 44.5% from its original price.

V. Analysis & Outlook
Analysis
- **Short Term**: Amid raw material price volatility, low industry operating rates, and sluggish domestic demand recovery, domestic PS prices are likely to remain range-bound at relatively low levels in the near term. Although export performance is strong, export volumes remain comparatively small relative to domestic consumption—thus offering limited overall price support.
- **Medium Term**: As supply-chain disruptions and elevated costs triggered by overseas geopolitical developments ease temporarily, and as demand fluctuations persist, China’s PS export volumes may face increasing pressure to sustain growth—leading to greater export volatility. Gradual commissioning of new domestic capacity could further intensify supply-side pressure; should demand fail to keep pace, downward price pressure may emerge.
- **Long Term**: With ever-growing domestic production scale, export markets represent an inevitable outlet for surplus capacity—and export volumes are expected to expand continuously. Simultaneously, national policy support for high-performance engineering plastic modification technologies, along with rapidly growing downstream demand for advanced PS sheet applications in emerging sectors, will provide fresh growth impetus—propelling the PS market toward higher-quality, value-added development.

Outlook
- **Prices**: From May to July 2026, the mainstream price range for GPPS in East China is projected to be RMB 7,800–8,600 per ton, and for HIPS, RMB 8,400–9,200 per ton—reflecting a pattern of high-range consolidation, with seasonal strength prevailing during peak demand periods.
- **Supply-Demand Balance**: Persistently low operating rates constrain supply elasticity. Feedstock costs define the price floor, while demand dynamics determine the upside ceiling. Evolving overseas demand and gradual release of new domestic capacity will continue reshaping the supply-demand equilibrium, with export markets playing an increasingly pivotal role.